Ir Introduction to DandE Unilever Brazil Tcm13-163693
Transcript of Ir Introduction to DandE Unilever Brazil Tcm13-163693
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Developing & Emerging markets
5 March 2009
This presentation may contain forward-looking statements, includingforward-looking statements within the meaning of the United StatesPrivate Securities Litigation Reform Act of 1995. These forward-looking
statements are based upon current expectations and assumptionsregarding anticipated developments and other factors affecting the Group.
They are not historical facts, nor are they guarantees of futureperformance. Because these forward-looking statements involve risks anduncertainties, there are important factors that could cause actual results todiffer materially from those expressed or implied by these forward-looking
statements. Further details of potential risks and uncertainties affectingthe Group are described in the Groups filings with the London StockExchange, Euronext Amsterdam and the US Securities and Exchange
Commission, including the Annual Report & Accounts on Form 20-F. Theseforward-looking statements speak only as of the date of this presentation.
Safe harbour statement
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Developing and Emerging markets
The D&E Opportunity
Unilever: Local Roots and Global Scale
Economic turbulence
The D&E opportunity is huge
0.5
2.6
2.6
Affluent
Aspiring
Striving
Population(billions)
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The pyramid is evolving into a diamond
Have lots
Haves
Not yets
2008 2018 Change
+ 0.4
+ 0.6
- 0.4
3.2
2.2
0.9
Source: Unilever estimates
2.6
2.6
0.5
Billions of people in D&E countries
1 billion newconsumers in the
next ten years
New consumers
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Market development opportunity
Per Capita Consumption (US $* per year )Detergents
India China Indonesia Brazil USA
Shampoo
India China Indonesia Brazil USA UK
Source : Euromonitor, Unilever estimates
Skin cleansing - liquids
India China Indonesia Brazil USA UK
UK
Ice Cream
India Indonesi a China Brazil UKUSA
* at PPP rates
Unilever scale and geographic reach
The Americas | 13.2bn | 32%
2008 Unilever Turnover 40.5bn | 100%
Western Europe |12.8bn | 32%
Asia Africa CEE | 14.5bn | 36%
North America | 7.4bn | 18%
Latin America | 5.8bn | 14%
D&E 20bn 48%
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Big global brands
13 billion euro + brands
In Brazil, 75% of sales come from these brands
Local talent meeting local needs
90% local management
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E.G. Asia Africa
6,000 core distributors
27,000 sales people
11 million retail outlets
Distribution strength
Winning with customers
In Asia we are ranked
#1
in 8 out of 9
countries
#1
#1
#1
#1#1
#1#1
#2
#1
Source: AC Nielsen
Example: Asia
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Internationalcompetitors
Our business strategy
Localcompetitors
Bottom of thepyramid
Top of thepyramid
Work thepyramid
Leverage the fullpotential of the
market
Building markets driving penetration
Shampoo sachets Re-closable multi-usesachets
Deo ministicks Mini cubes
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Building markets - uptrading
conversion upgrading uptrading
Loose LeafTea
Branded PacketTea
Mid-marketTeabags
DoubleChamber
FunctionalTeas
D&E ConversionTeabags
Pyramids
-2
0
2
4
6
8
10
12
14
16
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
UVG UPG
Long-term strength in D&ESince 1990 Underlying sales growth 9% pa on average Hard currency growth 7% pa on average Volume growth 5% pa on average Volume and value growth in every year
*1990-2002 LATAM and Asia. From 2003 all countries excl NA, WE, Japanand Australia.
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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Indonesia strengthened through crisis
1998 South-East AsiaEconomic Crisis
US$
Sales and profits in hard currency Profit level recovered in one year Profit margin increased
Operating profitTurnover
2 00 0 2 00 1 2 00 2 2 00 3 2 00 4 2 00 5 2 00 6 2 00 7 2 00 8
Argentina - strengthened through crisis
US$
2002Peso crisis
Sales and profits in hard currency Profit level recovered in two years Profit margin increased
US$ Operating profitTurnover
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7269Mayonnaise9389Soups8184Bouillon
4947Skin Cleansing6967Deodorants4842Hair
7868Fabric Conditioners7069Solution Wash
Change20052001Category
Market share %
Argentina - strengthened throughcrisis
D&E Growth is Profitable2008 Operating margin before RDIs*
* Restructuring, disposals and one-off items
Unileveraverage
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Key messages
The D&E opportunity is huge
Unilever is uniquely well positioned: strong local roots Brands People Distribution systems Leading edge capabilities in brand building
Now starting to fully leverage with global scale Simpler organisation Building global and regional innovation capability Regional and global synergies in buying and manufacturing
Economic turbulence brings opportunity: confident in ability to comeout stronger
D&E is in our DNA !